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Emirates may seek up to $50 billion for financing

"Over the next decade I'd say we'll need between $30 billion and $50 billion of financing," Gary Chapman, Emirates's president of group services, said in an interview in Dubai yesterday.

"It'll be a mixture of commercial debt, leases and export credits."

Emirates is the largest customer for Airbus's A380 with commitments for 55 of the double-decker superjumbos. It has 110 planes on order up to 2012, worth about $30 billion, and plans to buy another 100 Airbus A350s or Boeing 787s worth at least $16 billion at list prices.

"In terms of Dubai-owned business, Emirates is a jewel in the crown, so I think there would be plenty of investors willing to buy their bonds," HSBC Holdings Plc Middle East credit analyst Chavan Bhogaita said in an interview. Although they're not rated, other Dubai government companies have got high single A ratings so investors might see them at a similar level."

In the past decade, Emirates has raised about $12 billion in finance for fleet expansion, according to Chapman. To the end of 2008 Emirates has 29 planes due for delivery, 75 per cent of which are already financed or leased.

"We'll finance the remaining 25 per cent, or about $500 million, from a mix of conventional and Islamic financing plus leases," he said, declining to be more specific.

Emirates has $3 billion of loans and bonds outstanding, data compiled by Bloomberg show. The bonds, in currencies including UAE dirhams, US dollars and Singapore dollars, include a $550 million Islamic sukuk sold in 2005.